Summary
McKesson Corporation reported a net loss of $138 million, or a loss of $0.68 per share, for the first quarter of fiscal year 2019, a significant decrease compared to a net income of $309 million, or $1.45 per share, in the prior year's same quarter. This decline was largely driven by a substantial $570 million goodwill impairment charge, primarily within its European Pharmaceutical Solutions segment, stemming from updated UK government reimbursement reductions and a segment reporting structure change. Additionally, restructuring and asset impairment charges of $96 million also impacted profitability. Despite the net loss, the company saw a 3% increase in total revenues, reaching $52.6 billion, driven by growth in its U.S. Pharmaceutical and Specialty Solutions segment, along with contributions from recent acquisitions. The company's gross profit margin also improved to 5.28% from 5.01% year-over-year. McKesson continues to execute its strategic initiatives, including a multi-year growth plan and ongoing share repurchases, signaling a focus on operational optimization and shareholder returns amidst ongoing market challenges.
Financial Highlights
49 data points| Revenue | $52.61B |
| Cost of Revenue | $49.83B |
| Gross Profit | $2.78B |
| Operating Expenses | $2.70B |
| Operating Income | $83.00M |
| Net Income | -$138.00M |
| EPS (Basic) | $-0.68 |
| EPS (Diluted) | $-0.68 |
| Shares Outstanding (Basic) | 202.00M |
| Shares Outstanding (Diluted) | 202.00M |
Key Highlights
- 1Reported a net loss of $138 million ($0.68/share) for Q1 FY2019, a sharp decline from a net income of $309 million ($1.45/share) in Q1 FY2018.
- 2Total revenues increased by 3% to $52.6 billion, primarily driven by the U.S. Pharmaceutical and Specialty Solutions segment and business acquisitions.
- 3Recorded a significant non-cash goodwill impairment charge of $570 million, impacting the European Pharmaceutical Solutions segment.
- 4Incurred $96 million in restructuring and asset impairment charges related to a new strategic growth initiative.
- 5Gross profit margin improved to 5.28% from 5.01% year-over-year.
- 6Repurchased $297 million of common stock during the quarter, continuing its share repurchase program.
- 7Declared a quarterly dividend of $0.34 per common share, with a subsequent increase to $0.39 announced.